2012-10-01_REVISION - M1977284 (9)

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Mineral Joe Mine Environmental Protection Plan 1 1. INTRODUCTION The Mineral Joe Mine is an underground uranium and vanadium mine located in western Montrose County, Colorado. The Mineral Joe Mine is currently owned by Cotter Corporation (N.S.L.) ( "Cotter "). Mining began at the property in the 1950s and the existing mine permit was issued to Kelmine Corporation in the late 1970s under Colorado mining permit number M -1977 -284. The mine permit was assigned to Cotter in 1993. 1.1 Environmental Protection Plan Requirements and Organization The Colorado Division of Reclamation, Mining and Safety ( "DRMS ") determined that the Mineral Joe Mine is a Designated Mining Operation ( "DMO ") based on the passage of House Bill 1161 which changed the statutory definition of DMO to include all uranium mines. As a DMO, the Mineral Joe Mine is required to submit an Environmental Protection Plan ( "EPP" or "Plan ") in accordance with the Colorado Mined Land Reclamation Act (C.R.S. 34 -32 -101 to -127, the "Act ") and the Hard Rock/Metal Mining Rules and Regulations (the "Rules "). Due to the small size of the affected area (less than 5 acres), the Mineral Joe Mine is considered a 110d Limited Impact Operation and the EPP is required as Exhibit T to the 110d Mine Reclamation Plan. This EPP describes how the Operator will assure compliance with the provisions of the Act and Rules to protect all areas that have the potential to be affected by designated chemicals or potentially toxic or acid forming materials. The specific facilities required for consideration under the Rules include the following: • leach facilities, or heap leach pad (not applicable at the Mineral Joe Mine); • tailings storage or disposal areas (not applicable at the Mineral Joe Mine); • impoundments (not applicable at the Mineral Joe Mine); • waste rock piles; • stock piles, temporary or permanent; and • land application sites (not applicable at the Mineral Joe Mine). The facilities of interest for the EPP at the Mineral Joe Mine include the waste rock pile, ore storage area, stormwater diversion ditches, and underground workings. The purpose of this EPP is to provide for protection of human health, property and the environment related to these features. Stormwater management, hygiene, and minimizing water -rock interaction are the particular focus of environmental protection measures for the Mineral Joe Mine. 1.2 Site Location and Ownership The Mineral Joe Mine is located in Montrose County, Colorado, near the northern end of Monogram Mesa in the southwest portion of Paradox Valley (approximately nine miles west of Naturita and ten miles southeast of Bedrock). Access to the site is provided by Montrose County Road EE19, one mile from State Highway 90 (Figure 1). The proposed permitted mine area (3.64 acres) lies within Sections 21 and 22, T46N, R 17 W, NMPM, and on the Mineral Joe Claims (MJ -2, MJ -12, MJ -14, MJ -17, MJ -18, and MJ -19, which total 118 acres) as shown on Map 1. The adjacent JD -6 Mine and JD -6 lease tract is owned /leased by Cotter and is permitted under a separate mining permit (No. M -1977 -310). These separate claims for the Mineral Joe and JD -6 Mines share a common portal and surface facilities, except for separate vent holes and roads leading to the vent holes. Due to its close proximity to the JD -6 Mine, some of the stormwater management performed at the Mineral 4148B.120927 Whetstone Associates •